FXstreet.com (Barcelona) - A slump in Gpb GDP early in the European session triggered a mayor sell in Europeans that continue all day long. The release of January U.S. existing homes data that plunges to an 11-year low, exacerbated the movements, sending stocks markets lower. By the end of the day Dow Jones lost 1.1%, reversing past Tuesday spike of optimism in markets.
Euro tested the 1.2690 zone and remains just above the 1.2700. Gbp fell more than 400 pips, reaching 1.4175 before halting; against dollar, remains just above the 1.4200 level. Break under mentioned minimums could send both pairs even lower, with next supports at 1.2646 for Eur/Usd and 1.4140 zone for Gbp/Usd.
Dollar strength is nothing more but a return of risk aversion, that actually never leaved, and the global need of safe-haven assets.